smallbusiness.co.uk: Helping your business think big

Email a Friend

Businesspeople more risk-averse than general population

British entrepreneurs demonstrate a far more prudent and risk-averse attitude than the general public, according to a psychological study.

British entrepreneurs demonstrate a far more prudent and risk-averse attitude than the general public, according to a psychological study.

A survey carried out by AXA Business Insurance and Psychological Consultancy Limited, in conjunction with the Association of Business Psychologists, finds that small business owners are far more likely to maintain wary, prudent and deliberate (calculated) traits than the general population.

Contrary to stereotypical perceptions of entrepreneurs as maverick individuals with an inherent appetite for risk, the analysis finds that the majority (52 percent) of respondents fall within one of three risk types: wary (22 per cent), prudent (15.2 per cent) or deliberate (14.8 per cent).

Moreover, the entrepreneurs surveyed showed far less adventurous characteristics (3.6 percent) than the average public (12.8 percent).

Despite the seemingly conservative approach taken by entrepreneurs, the research finds that individuals who are more calm, confident, optimistic, organised, methodical and measured have greater financial resources and may, therefore, be more successful small business owners.

Darrell Sansom, managing director at AXA Business Insurance says, 'We often think of entrepreneurs as being adventurous renegades, renouncing the more common commercial work environment in search of their own fortunes and in support of their passions.

'It’s encouraging to see the level of vigilance they employ when compared with the broader population, as from our experience, those businesses featuring more diligent management teams have traditionally been more successful in the longer term.'

See also: Reduce the risk of crime

Previous article

Businesses held back by local councils

Next article

SME owners putting houses on the line 

Post a comment

Related

News | Opportunities

Risk takers encouraged by insolvency reforms

News | Outlook

Are you a risk-taker?

News | Law

Free risk assessment for your business

News | Management

Donít risk losing employment tribunals

Small Business Offers

More from Small Business

Starting a Business
Is 2015 the year to rebrand your business?

Is 2015 the year to rebrand your business?

Niall O’Loughlin discusses the high-profile branding errors made by businesses in recent times and what...  

Financing a Business
Two-minute tasks to benefit you and your business

Two-minute tasks to benefit you and your business

Here, Emily Coltman looks at some quick, two-minute tasks to consider introducing into your day...  

Running a Business
Preparing your small business for an exit

Preparing your small business for an exit

This piece, in association with Bibby Financial Services, looks at why it is always worth...  

Blog
Self-assessment tax returns causing stress at home for business owners

Self-assessment tax returns causing stress at home for business owners

Tax returns are probably the bane of your professional existence, and they're not so great...